This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13598303
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| EU probe into Samsung and Hitachi deals | |
| (40 minutes later) | |
| European Union antitrust regulators have launched an in-depth probe into two separate takeover bids in the computer hardware sector. | European Union antitrust regulators have launched an in-depth probe into two separate takeover bids in the computer hardware sector. |
| The first is US-based Seagate Technology's bid for for Samsung Electronics' loss-making hard disk drive unit. | The first is US-based Seagate Technology's bid for for Samsung Electronics' loss-making hard disk drive unit. |
| The other is Western Digital's purchase of Hitachi's storage business. | The other is Western Digital's purchase of Hitachi's storage business. |
| The commission is concerned the deals will reduce the number of rivals in the industry. | The commission is concerned the deals will reduce the number of rivals in the industry. |
| "Hard drives are the backbone of the digital economy," said Competition Commissioner Joaquin Almunia in a statement. | "Hard drives are the backbone of the digital economy," said Competition Commissioner Joaquin Almunia in a statement. |
| "The sector has already experienced significant consolidation, and the proposed acquisitions will further reduce competition." | "The sector has already experienced significant consolidation, and the proposed acquisitions will further reduce competition." |
| Seagate Technology has bid to buy South Korean Samsung's hard-disk drive business for $1.4bn. | Seagate Technology has bid to buy South Korean Samsung's hard-disk drive business for $1.4bn. |
| Western Digital, also based in the US, has offered $4.3bn for Japanese company Hitachi's hard drive unit. | Western Digital, also based in the US, has offered $4.3bn for Japanese company Hitachi's hard drive unit. |
| These acquisitions would reduce the number of large manufacturers in the sector to three from five. | These acquisitions would reduce the number of large manufacturers in the sector to three from five. |
| Western Digital would then have a 50% market share, while Seagate would have 40%. | Western Digital would then have a 50% market share, while Seagate would have 40%. |
| The only other player would be Toshiba with 10% of the market. | The only other player would be Toshiba with 10% of the market. |
| The regulators say they will make a decision by 10 October on whether the deals will be cleared or blocked. | The regulators say they will make a decision by 10 October on whether the deals will be cleared or blocked. |